Important information - the value of investments can go down as well as up, so you may not get back the amount you originally invest. You cannot normally access your money in a SIPP until age 55 (57 from 2028). It's important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our pension transfer factsheet. This information is not a personal recommendation for any particular product, service or course of action. If you are in any doubt about whether a pension transfer is suitable for your circumstances we strongly suggest that you seek advice from one of Fidelity’s advisers or an authorised financial adviser of your choice. Fidelity will only accept transfers from defined benefit pension schemes if you have taken financial advice and it confirms it is in your best interests to transfer. Eligibility to invest in a SIPP and tax treatment depends on personal circumstances and all tax rules may change in the future.
"Defined Benefit (DB)" (or final salary) schemes are a type of pension where the benefits paid to you, such as income and tax-free cash, are based on your salary and the number of years you have been employed. The benefits are referred to as “safeguarded benefits”, as the amounts you get are not influenced or impacted by stock market performance and offer certain guarantees.
Transferring a DB pension that contains any kind of promise or guarantee requires careful consideration. This is because the safeguarded benefits are lost once you transfer and cannot be reinstated. The value of some of these guaranteed benefits can be substantial and giving them up, by transferring to a Self-Invested Personal Pension (SIPP), may prove to be both costly and inappropriate.
If you are considering transferring your DB pension into the Fidelity SIPP, there are some important things you should consider as you will be giving up valuable benefits.
To ensure you are fully informed of the benefits and guarantees you would lose, the government insists that appropriate financial advice from a suitably qualified adviser MUST be taken, before you can transfer DB pensions worth £30,000 or more.
At Fidelity, we will only accept transfers into a SIPP from DB pensions if you have taken financial advice and the advice confirms that it is in your best interests to transfer. This applies to all DB transfers into Fidelity, not just those above £30,000.
Your financial adviser must confirm it is suitable for you to transfer your DB pension to a SIPP, (at which time any guarantees on the DB pension will be lost). To complete the transfer, your adviser will need to complete and return the Transfer advice declaration form to us, so we can process your request.
You must take financial advice and that advice must recommend that a transfer of your DB pension (final salary) is in your best interests before you can transfer. For most of us, that advice (which you must pay for) will recommend that transferring is not beneficial due to the DB guarantees and their value.
If you are interested in transferring your DB pension, you should seek advice from an authorised financial adviser of your choice.
Fidelity’s advice service can also assist you with personalised retirement income planning advice which includes a lifetime cashflow analysis, retirement income structuring and / or pension transfer advice (including the analysis of pensions with safeguarded benefits). This is a paid for service. Please note however, that DB transfer advice is not provided on a standalone basis, as summarised below. In addition, any recommendation to transfer would only be to Fidelity’s ‘Financial Adviser Services’ platform which is used by advisers.
This service will review all your retirement income planning needs and will provide a personalised report, that will recommend if you should transfer any pension with safeguarded benefits and what it should be invested into. As a result, this service would not be suitable for anyone seeking to transfer and then choose their own investments.
If Fidelity’s recommendation is that it is not in your interests to transfer, Fidelity will not accept a transfer from your existing scheme. You will, however, receive a Financial Advice Certificate which may enable you to release your transfer to an alternative pension provider, subject to you meeting their requirements, if you still wish to proceed against Fidelity’s advice.
The advice fee will apply, regardless of the outcome.
Call us on 0800 368 6882. We’re available Monday to Friday from 9am to 5pm.
Please note - from time to time we experience a high demand for this service, leading to a longer wait time to speak with one of our advisers and to complete our advice recommendations.
The Government offers a free and impartial guidance service to help you understand your options at retirement. This is available via the web, telephone or face-to-face through the Pension Wise service which is now part of MoneyHelper; the easy way to get free help for all your pension and money choices. You can find out more by going to moneyhelper.org.uk or call them on 0800 011 3797.
Important information
This information is not a personal recommendation for any particular product, service or course of action. Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s retirement service on 0800 084 5045 or refer to an authorised financial adviser of your choice.
